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33 flats part of money laundering scam

THE ASIAN AGE.
Published : Apr 7, 2018, 1:44 am IST
Updated : Apr 7, 2018, 1:44 am IST

ED alleges that his associates ran the tainted firm.

Pyramid Developers were appointed developers while another firm was appointed the architect for the redevelopment by the Jamat-E-Jamhooria CHS Ltd.
 Pyramid Developers were appointed developers while another firm was appointed the architect for the redevelopment by the Jamat-E-Jamhooria CHS Ltd.

Mumbai: The Enforcement Directorate (ED) on Friday attached 33 flats valued at Rs 462 crore belonging to a prominent builder as part of a money-laundering probe. The investigation under the Prevention of Money Laundering Act (PMLA) relates to an alleged violation of the Slum Rehabilitation Act (SRA) in the western suburb of Bandra.

The attached flats belonged to Pyramid Developers that was under the ED scanner in a case involving alleged use of fake documents for fraudulently gaining extra FSI (floor space index) under the SRA scheme.

The agency registered a criminal case under the PMLA in March last year on the basis of a March 2014 first information report filed at the Bandra police station against Congress leader and former state minister Baba Siddique and a few others. The probe pertains to the controversial the SRA project of Jamat-e-Jamhooriya CHS Ltd in Bandra West that is facing investigation for alleged irregularities including FSI violation and use of forged documents to allot flats to 158 beneficiaries. The irregularities happened during the time when Siddique was associated with the Maharashtra Housing and Area Development Board (Mhada) in 2002-04. ED alleges that his associates ran the tainted firm.

“We are examining allegations that the suspects have defrauded the state by preparing false ration cards, photo passes, shop and establishment licences and submitted the same to the SRA with an intention to get approval from SRA for redevelopment scheme of Jamat-E-Jamhooria CHS Ltd,” an ED source said. “The said bogus documents were also used to get extra FSI for wrongful gains,” he said. ED suspects that the proceeds from the alleged irregularities were sent abroad.

Pyramid Developers were appointed developers while another firm was appointed the architect for the redevelopment by the Jamat-E-Jamhooria CHS Ltd.

Tags: enforcement directorate, sra